Fact Box: Commodities Transaction Tax (CTT) on non-farm products

As per an announcement made by the Central Board of Direct Taxes (CBDT), from July 1, 2013, the Commodities Transaction Tax (CTT) shall be levied on the derivative contracts of non-agricultural commodities which are transacted via recognized commodity bourses.

What is Commodities Transaction Tax (CTT)?

Proposed in Finance Bill, 2013 for enhancing financial resources.

A tax which shall be levied on non-agricultural commodities futures contracts at the same rate as on equity futures that is at 0.01% of the price of the trade.

CTT would tax trading of non-farm commodities like gold, silver and non-ferrous metals such as copper and energy products like crude oil and natural gas in India.